Low Pay Commission consultation 2021
Detail of outcome
The Low Pay Commission’s 2021 consultation has now concluded. Our recommendations to Government on the 2022 National Living Wage and National Minimum Wage rates have been accepted in full published.
Our comprehensive 2021 Report, setting out in full the consultation evidence we received and which informed our recommendations, will be published later in 2021.
Original consultation
Consultation description
The Low Pay Commission (LPC) is the independent body which advises Government on the levels of the National Living Wage (NLW) and National Minimum Wage (NMW). To help shape the recommendations we will make this autumn on the 2022 minimum wage rates, we are seeking evidence on the impact of the NLW and NMW. All interested parties are invited to submit evidence to our consultation.
On 1 April 2021, the NLW will increase from £8.72 to £8.91 and the age threshold for the rate will be reduced from 25 to 23. Our recommendations on the NLW will be guided by the Government’s target for the rate to reach two-thirds of median earnings by 2024, taking economic conditions into account.
For the remaining NMW rates (the 21-22-Year-Old Rate, the 18-20-Year-Old Rate, the 16-17-Year-Old Rate and the Apprentice Rate) our recommendations will be based on our usual approach of raising the rate as high as possible without damaging employment.
What we are seeking evidence on
Our main concern is to gather evidence on the effects on employers and workers of the recent increases in the NMW and NLW. As each year, we are seeking views on business conditions and the economic outlook, in light of the Covid-19 pandemic and the support measures the Government has implemented in response to it.
This year we are particularly interested in:
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The affordability and effects of an increase in April 2022 to an NLW rate of £9.42. This is our current central projection for next April’s rate, with a likely range of 7 pence above or below this figure.
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Views on the NLW pathway to 2024. Based on forecasts, our current central projection for the April 2024 NLW rate is £10.33, with a likely range of 23 pence above or below this figure. The age threshold for the NLW is also due to come down to 21 by 2024 at the latest.
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We also want to hear about the effects of recent increases in the NLW and other rates, and their impacts in particular on employment and hours, pay and benefits, productivity, prices and profits.
Please see the consultation letter for details on the evidence we are seeking and a list of questions to consider.
We are holding online meetings with groups affected by the minimum wage throughout this consultation period. Please contact us if you would be interested in talking to us directly about your experience of the minimum wage.
How to respond
Responses are requested by email. Because of ongoing Covid-19 restrictions, we cannot guarantee to read postal responses. Please contact us if this causes you a problem.
Documents
Updates to this page
Last updated 28 October 2021 + show all updates
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Updated with consultation outcome.
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First published.